revenue estimating conference tax: documentary stamp tax
TRANSCRIPT
REVENUE ESTIMATING CONFERENCE Tax: Documentary Stamp Tax Issue: Spousal Transfers – Homestead Property Bill Number(s): Proposed Language Entire Bill Partial Bill: Sponsor(s): N/A Month/Year Impact Begins: July 1, 2018 Date of Analysis: 9/28/2017 (Revised) Section 1: Narrative a. Current Law: Section 201.02(1)(a), Florida Statutes, states “On deeds, instruments, or writings whereby any lands, tenements,
or other real property, or any interest therein, shall be granted, assigned, transferred, or otherwise conveyed to, or vested in, the purchaser or any other person by his or her direction, on each $100 of the consideration therefor the tax shall be 70 cents. When the full amount of the consideration for the execution, assignment, transfer, or conveyance is not shown in the face of such deed, instrument, document, or writing, the tax shall be at the rate of 70 cents for each $100 or fractional part thereof of the consideration therefor. For purposes of this section, consideration includes, but is not limited to, the money paid or agreed to be paid; the discharge of an obligation; and the amount of any mortgage, purchase money mortgage lien, or other encumbrance, whether or not the underlying indebtedness is assumed. If the consideration paid or given in exchange for real property or any interest therein includes property other than money, it is presumed that the consideration is equal to the fair market value of the real property or interest therein.” Section 201.02(7), F.S., reads “Taxes imposed by this section do not apply to a deed, transfer, or conveyance between spouses or former spouses pursuant to an action for dissolution of their marriage wherein the real property is or was their marital home or an interest therein. Taxes paid pursuant to this section shall be refunded in those cases in which a deed, transfer, or conveyance occurred 1 year before a dissolution of marriage. This subsection applies in spite of any consideration as defined in subsection (1). This subsection does not apply to a deed, transfer, or conveyance executed before July 1, 1997.”
b. Proposed Change: Amends section 201.02(7), F.S., to create a new subparagraph “(a) Taxes imposed by this section do not
apply to a deed, transfer, or conveyance between spouses of real estate that is or was used and owned as a homestead by either spouse as defined in s. 196.102(13) and which secures a mortgage debt or other debt. This paragraph does not apply to a deed, transfer, or conveyance of property if neither spouse has claimed the property as a homestead within one year prior to the deed, transfer, or conveyance, nor does it apply to a deed, transfer or conveyance executed before July 1, 2018.”
Section 2: Description of Data and Sources
2015 Ad Valorem Tax Rolls 2016 Ad Valorem Tax Rolls 2017 Ad Valorem Tax Rolls (sales data files and real property rolls) General Revenue Consensus Estimating Conference Documentary Stamp Tax Growth Rates, August 2017
Section 3: Methodology (Include Assumptions and Attach Details)
After merging the real property information into all 2016 property transfers from the sales data file, all sales that were not between related parties were removed. These were filtered out based on Sale Qualification Code 30, which is defined as a “transfer involving affiliated parties (examples: family, corporate, business, landlord-tenant).” From the remaining records, multi-parcel sales were winnowed to a single record, which was needed to avoid over-counting the documentary stamps paid in a single transaction. If one parcel in a multi-parcel sale had a homestead classification in the sale year, that parcel was kept. Three additional filters removed any records with:
1. a sale price of $100 or less. The documentary stamp amount is based on the consideration, which includes “the amount of any mortgage, purchase money mortgage lien, or other encumbrance,” (section 201.02(1)(a)). Properties with consideration of $100 or less were excluded due to lack of a mortgage or other debt.
2. a governmental land use code or an exemption for constitutional charitable predominant use (under section 196.196), as these transactions could not take place between spouses.
3. no value classified as homestead (based on the value in the 2016 Just Value – Homestead field). Flags were added to the homestead records based on the Owner Name fields from before and after the sale. Names with words or abbreviations denoting a business are excluded from the “Natural Persons” value. Names containing “Trust” were separated into a subset. Documentary stamp amounts were calculated from the sale price. Growth rates were taken from the General Revenue Consensus Estimating Conference in August 2017. Due to the broad definition of the Sales Qualification Code, estimates assume
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REVENUE ESTIMATING CONFERENCE Tax: Documentary Stamp Tax Issue: Spousal Transfers – Homestead Property Bill Number(s): Proposed Language
that some percentage of the sales took place among parties whose relationship was not spousal. The impact assumes 95% of documentary stamps paid are from transactions between spouses in the high estimate, 90% in the middle, and 85% in the low. The proposed language would take effect July 1, 2018.
Section 4: Proposed Fiscal Impact
High Middle Low
Cash Recurring Cash Recurring Cash Recurring
2018-19 $ (4.4 M) $ (4.4 M) $ (4.2 M) $ (4.2 M) $ (3.9 M) $ (3.9 M)
2019-20 $ (4.6 M) $ (4.6 M) $ (4.3 M) $ (4.3 M) $ (4.1 M) $ (4.1 M)
2020-21 $ (4.7 M) $ (4.7 M) $ (4.5 M) $ (4.5 M) $ (4.2 M) $ (4.2 M)
2021-22 $ (4.9 M) $ (4.9 M) $ (4.6 M) $ (4.6 M) $ (4.4 M) $ (4.4 M)
2022-23 $ (5.1 M) $ (5.1 M) $ (4.8 M) $ (4.8 M) $ (4.5 M) $ (4.5 M)
List of affected Trust Funds:
Documentary Stamp Trust Fund Group Section 5: Consensus Estimate (Adopted: 09/28/2017): The Conference adopted the middle estimate.
GR Trust Local/Other Total
Cash Recurring Cash Recurring Cash Recurring Cash Recurring
2018-19 (1.7) (1.7) (2.5) (2.5) 0.0 0.0 (4.2) (4.2)
2019-20 (1.7) (1.7) (2.6) (2.6) 0.0 0.0 (4.3) (4.3)
2020-21 (1.8) (1.8) (2.7) (2.7) 0.0 0.0 (4.5) (4.5)
2021-22 (1.8) (1.8) (2.8) (2.8) 0.0 0.0 (4.6) (4.6)
2022-23 (1.9) (1.9) (2.9) (2.9) 0.0 0.0 (4.8) (4.8)
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Impact Summary
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18
19
A B C D E F G
All Sales Between related parties (Qual code = 30) above De Minimus Transfer value (Revised)
Spousal Transfer of 2016 Homesteads Doc Stamp Impact
High Middle Low
Year Cash Recurring Cash Recurring Cash Recurring
2018-19 (4.4 M)$ $ (4.4 M) (4.2 M)$ $ (4.2 M) (3.9 M)$ $ (3.9 M)
2019-20 (4.6 M)$ $ (4.6 M) (4.3 M)$ $ (4.3 M) (4.1 M)$ $ (4.1 M)
2020-21 (4.7 M)$ $ (4.7 M) (4.5 M)$ $ (4.5 M) (4.2 M)$ $ (4.2 M)
2021-22 (4.9 M)$ $ (4.9 M) (4.6 M)$ $ (4.6 M) (4.4 M)$ $ (4.4 M)
2022-23 (5.1 M)$ $ (5.1 M) (4.8 M)$ $ (4.8 M) (4.5 M)$ $ (4.5 M)
Spousal Transfer (All Property) Doc Stamp Impact
High Middle Low
Year Cash Recurring Cash Recurring Cash Recurring
2018-19 (9.4 M)$ $ (9.4 M) (7.5 M)$ $ (7.5 M) (5.6 M)$ $ (5.6 M)
2019-20 (9.8 M)$ $ (9.8 M) (7.8 M)$ $ (7.8 M) (5.8 M)$ $ (5.8 M)
2020-21 (10.1 M)$ $ (10.1 M) (8.1 M)$ $ (8.1 M) (6.0 M)$ $ (6.0 M)
2021-22 (10.5 M)$ $ (10.5 M) (8.4 M)$ $ (8.4 M) (6.2 M)$ $ (6.2 M)
2022-23 (10.9 M)$ $ (10.9 M) (8.7 M)$ $ (8.7 M) (6.5 M)$ $ (6.5 M)
9/22/20176
Homestead Transfers
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A B C D E F G
All Homestead Sales Between Related Parties (Sale Qualification Code = 30) above De Minimus Transfer Value
Homestead as of January 1 2016. Sales data and Doc Stamps Paid from 2016 sales.
Natural Person Trust (1=Trust in name) Sum of Doc Stamps Paid Sum of Sales Price Count
0 0 206,450$ 29,935,906$ 164
0 1 9,156$ 1,308,000$ 7
1 0 3,899,588$ 566,008,548$ 4,488
1 1 232,511$ 33,215,793$ 155
Total Homestead Doc Stamp 4,347,705$
Homestead Doc only Natural Person 4,132,099$
Homestead Doc Natural Person no Trusts 3,899,588$
Doc Stamp CY Growth Rates
(calculated from GR 8/17) CY Documentary Stamps
2017 5.25% 4,349,034$
2018 4.15% 4,529,519$
2019 3.85% 4,703,905$
2020 3.65% 4,875,598$
2021 3.60% 5,051,119$
2022 3.55% 5,230,434$
2023 3.45% 5,410,884$
Homestead Doc Stamp converted CY to FY
95% 90% 85%
High Middle Low
2017-18 4,217,313$ 3,995,349$ 3,773,385$
2018-19 4,385,876$ 4,155,041$ 3,924,205$
2019-20 4,550,264$ 4,310,776$ 4,071,289$
2020-21 4,715,191$ 4,467,023$ 4,218,855$
2021-22 4,883,738$ 4,626,699$ 4,369,660$
2022-23 5,054,626$ 4,788,593$ 4,522,560$
Doc Stamp Exemption for Homesteads Impact
High Middle Low
Year Cash Recurring Cash Recurring Cash Recurring
2018-19 (4.4 M)$ $ (4.4 M) (4.2 M)$ $ (4.2 M) (3.9 M)$ $ (3.9 M)
2019-20 (4.6 M)$ $ (4.6 M) (4.3 M)$ $ (4.3 M) (4.1 M)$ $ (4.1 M)
2020-21 (4.7 M)$ $ (4.7 M) (4.5 M)$ $ (4.5 M) (4.2 M)$ $ (4.2 M)
2021-22 (4.9 M)$ $ (4.9 M) (4.6 M)$ $ (4.6 M) (4.4 M)$ $ (4.4 M)
2022-23 (5.1 M)$ $ (5.1 M) (4.8 M)$ $ (4.8 M) (4.5 M)$ $ (4.5 M)
9/22/20177
Non-Homestead Transfers
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A B C D E F G
All Non-Homestead Sales Between Related Parties (Sale Qualification Code = 30) above De Minimus Transfer Value
Non-Homestead as of January 1, 2016. Sales data and Doc Stamps Paid from 2016 sales.
Natural Person Trust (1=Trust in name) Sum of Doc Stamps Paid Sum of Sales Price Count
0 0 18,500,514$ 2,697,022,804$ 4,701
0 1 685,148$ 97,988,742$ 302
1 0 6,573,745$ 950,489,472$ 6,232
1 1 936,510$ 133,787,137$ 519
Total Non-Homestead Doc Stamp 26,695,917$
Non-Homestead Doc only Natural Person 7,510,255$
Non-Homestead Doc Natural Person no Trusts 6,573,745$
Doc Stamp CY Growth Rates
(calculated from GR 8/17) CY Documentary Stamps
2017 5.25% 7,904,543$
2018 4.15% 8,232,582$
2019 3.85% 8,549,536$
2020 3.65% 8,861,594$
2021 3.60% 9,180,612$
2022 3.55% 9,506,523$
2023 3.45% 9,834,498$
Non-Homestead Doc Stamp converted CY to FY
60% 40% 20%
High Middle Low
2017-18 4,841,138$ 3,227,425$ 1,613,713$
2018-19 5,034,635$ 3,356,424$ 1,678,212$
2019-20 5,223,339$ 3,482,226$ 1,741,113$
2020-21 5,412,662$ 3,608,441$ 1,804,221$
2021-22 5,606,140$ 3,737,427$ 1,868,713$
2022-23 5,802,307$ 3,868,204$ 1,934,102$
Doc Stamp Exemption for Non-Homestead Impact
High Middle Low
Year Cash Recurring Cash Recurring Cash Recurring
2018-19 (5.0 M)$ $ (5.0 M) (3.4 M)$ $ (3.4 M) (1.7 M)$ $ (1.7 M)
2019-20 (5.2 M)$ $ (5.2 M) (3.5 M)$ $ (3.5 M) (1.7 M)$ $ (1.7 M)
2020-21 (5.4 M)$ $ (5.4 M) (3.6 M)$ $ (3.6 M) (1.8 M)$ $ (1.8 M)
2021-22 (5.6 M)$ $ (5.6 M) (3.7 M)$ $ (3.7 M) (1.9 M)$ $ (1.9 M)
2022-23 (5.8 M)$ $ (5.8 M) (3.9 M)$ $ (3.9 M) (1.9 M)$ $ (1.9 M)
9/22/20178
REVENUE ESTIMATING CONFERENCE Tax: Documentary Stamp Tax Issue: Spousal Transfers – All Real Property Bill Number(s): Proposed Language Entire Bill Partial Bill: Sponsor(s): N/A Month/Year Impact Begins: July 1, 2018 Date of Analysis: 9/28/2017 (Revised) Section 1: Narrative a. Current Law: Section 201.02(1)(a), Florida Statutes, states “On deeds, instruments, or writings whereby any lands, tenements,
or other real property, or any interest therein, shall be granted, assigned, transferred, or otherwise conveyed to, or vested in, the purchaser or any other person by his or her direction, on each $100 of the consideration therefor the tax shall be 70 cents. When the full amount of the consideration for the execution, assignment, transfer, or conveyance is not shown in the face of such deed, instrument, document, or writing, the tax shall be at the rate of 70 cents for each $100 or fractional part thereof of the consideration therefor. For purposes of this section, consideration includes, but is not limited to, the money paid or agreed to be paid; the discharge of an obligation; and the amount of any mortgage, purchase money mortgage lien, or other encumbrance, whether or not the underlying indebtedness is assumed. If the consideration paid or given in exchange for real property or any interest therein includes property other than money, it is presumed that the consideration is equal to the fair market value of the real property or interest therein.” Section 201.02(7), F.S., reads “Taxes imposed by this section do not apply to a deed, transfer, or conveyance between spouses or former spouses pursuant to an action for dissolution of their marriage wherein the real property is or was their marital home or an interest therein. Taxes paid pursuant to this section shall be refunded in those cases in which a deed, transfer, or conveyance occurred 1 year before a dissolution of marriage. This subsection applies in spite of any consideration as defined in subsection (1). This subsection does not apply to a deed, transfer, or conveyance executed before July 1, 1997.”
b. Proposed Change: Amends section 201.02(7), F.S., to create a new subparagraph “(a) Taxes imposed by this section do not
apply to a deed, transfer, or conveyance between spouses of real property, or an interest therein, that secures a mortgage debt or other debt. This paragraph does not apply to a deed, transfer or conveyance executed before July 1, 2018.”
Section 2: Description of Data and Sources
2015 Ad Valorem Tax Rolls 2016 Ad Valorem Tax Rolls 2017 Ad Valorem Tax Rolls (sales data files and real property rolls) General Revenue Consensus Estimating Conference Documentary Stamp Tax Growth Rates, August 2017
Section 3: Methodology (Include Assumptions and Attach Details)
After merging the real property information into all 2016 property transfers from the sales data file, all sales that were not between related parties were removed. These were filtered out based on Sale Qualification Code 30, which is defined as a “transfer involving affiliated parties (examples: family, corporate, business, landlord-tenant).” From the remaining records, multi-parcel sales were winnowed to a single record, which was needed to avoid over-counting the documentary stamps paid in a single transaction. If one parcel in a multi-parcel sale had a homestead classification in the sale year, that parcel was kept. Three additional filters removed any records with:
1. a sale price of $100 or less. The documentary stamp amount is based on the consideration, which includes “the amount of any mortgage, purchase money mortgage lien, or other encumbrance,” (section 201.02(1)(a)). Properties with consideration of $100 or less were excluded due to lack of a mortgage or other debt.
2. a governmental land use code or an exemption for constitutional charitable predominant use (under section 196.196), as these transactions could not take place between spouses.
3. any value classified as homestead (based on the value in the 2016 Just Value – Homestead field). Flags were added to the non-homestead records based on the Owner Name fields before and after the sale. Names with words or abbreviations denoting a business are excluded from the “Natural Persons” value. Names containing “Trust” were separated into a subset. Documentary stamp amounts were calculated from the sale price. Growth rates were taken from the General Revenue Consensus Estimating Conference in August 2017. Due to the broad definition of the Sales Qualification Code, estimates assume that some percentage of the sales took place among parties whose relationship was not spousal. The impact assumes 60% of documentary stamps paid are from transactions between spouses in the high estimate, 50% in the middle, and 20% in the low.
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REVENUE ESTIMATING CONFERENCE Tax: Documentary Stamp Tax Issue: Spousal Transfers – All Real Property Bill Number(s): Proposed Language
The revised estimates from the proposed language for Spousal Transfers – Homestead Property was added to the non-homestead property estimate to estimate the impact for all real property. The proposed language would take effect July 1, 2018.
Section 4: Proposed Fiscal Impact
High Middle Low
Cash Recurring Cash Recurring Cash Recurring
2018-19 $ (9.4 M) $ (9.4 M) $ (8.4 M) $ (8.4 M) $ (5.6 M) $ (5.6 M)
2019-20 $ (9.8 M) $ (9.8 M) $ (8.7 M) $ (8.7 M) $ (5.8 M) $ (5.8 M)
2020-21 $ (10.1 M) $ (10.1 M) $ (9.0 M) $ (9.0 M) $ (6.0 M) $ (6.0 M)
2021-22 $ (10.5 M) $ (10.5 M) $ (9.3 M) $ (9.3 M) $ (6.2 M) $ (6.2 M)
2022-23 $ (10.9 M) $ (10.9 M) $ (9.6 M) $ (9.6 M) $ (6.5 M) $ (6.5 M)
List of affected Trust Funds:
Documentary Stamp Trust Fund Group Section 5: Consensus Estimate (Adopted: 09/28/2017): The Conference adopted the middle estimate for the homesteaded properties and an average of the middle and the high for all other properties. The Conference assumes interest therein means a direct interest in the real property.
GR Trust Local/Other Total
Cash Recurring Cash Recurring Cash Recurring Cash Recurring
2018-19 (3.3) (3.3) (5.0) (5.0) 0.0 0.0 (8.3) (8.3)
2019-20 (3.5) (3.5) (5.2) (5.2) 0.0 0.0 (8.7) (8.7)
2020-21 (3.6) (3.6) (5.4) (5.4) 0.0 0.0 (9.0) (9.0)
2021-22 (3.7) (3.7) (5.6) (5.6) 0.0 0.0 (9.3) (9.3)
2022-23 (3.8) (3.8) (5.8) (5.8) 0.0 0.0 (9.6) (9.6)
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Impact Summary
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A B C D E F G
All Sales Between related parties (Qual code = 30) above De Minimus Transfer value (Revised)
Spousal Transfer of 2016 Homesteads Doc Stamp Impact
High Middle Low
Year Cash Recurring Cash Recurring Cash Recurring
2018-19 (4.4 M)$ $ (4.4 M) (4.2 M)$ $ (4.2 M) (3.9 M)$ $ (3.9 M)
2019-20 (4.6 M)$ $ (4.6 M) (4.3 M)$ $ (4.3 M) (4.1 M)$ $ (4.1 M)
2020-21 (4.7 M)$ $ (4.7 M) (4.5 M)$ $ (4.5 M) (4.2 M)$ $ (4.2 M)
2021-22 (4.9 M)$ $ (4.9 M) (4.6 M)$ $ (4.6 M) (4.4 M)$ $ (4.4 M)
2022-23 (5.1 M)$ $ (5.1 M) (4.8 M)$ $ (4.8 M) (4.5 M)$ $ (4.5 M)
Spousal Transfer (All Property) Doc Stamp Impact
High Middle Low
Year Cash Recurring Cash Recurring Cash Recurring
2018-19 (9.4 M)$ $ (9.4 M) (7.5 M)$ $ (7.5 M) (5.6 M)$ $ (5.6 M)
2019-20 (9.8 M)$ $ (9.8 M) (7.8 M)$ $ (7.8 M) (5.8 M)$ $ (5.8 M)
2020-21 (10.1 M)$ $ (10.1 M) (8.1 M)$ $ (8.1 M) (6.0 M)$ $ (6.0 M)
2021-22 (10.5 M)$ $ (10.5 M) (8.4 M)$ $ (8.4 M) (6.2 M)$ $ (6.2 M)
2022-23 (10.9 M)$ $ (10.9 M) (8.7 M)$ $ (8.7 M) (6.5 M)$ $ (6.5 M)
9/22/201711
Homestead Transfers
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A B C D E F G
All Homestead Sales Between Related Parties (Sale Qualification Code = 30) above De Minimus Transfer Value
Homestead as of January 1 2016. Sales data and Doc Stamps Paid from 2016 sales.
Natural Person Trust (1=Trust in name) Sum of Doc Stamps Paid Sum of Sales Price Count
0 0 206,450$ 29,935,906$ 164
0 1 9,156$ 1,308,000$ 7
1 0 3,899,588$ 566,008,548$ 4,488
1 1 232,511$ 33,215,793$ 155
Total Homestead Doc Stamp 4,347,705$
Homestead Doc only Natural Person 4,132,099$
Homestead Doc Natural Person no Trusts 3,899,588$
Doc Stamp CY Growth Rates
(calculated from GR 8/17) CY Documentary Stamps
2017 5.25% 4,349,034$
2018 4.15% 4,529,519$
2019 3.85% 4,703,905$
2020 3.65% 4,875,598$
2021 3.60% 5,051,119$
2022 3.55% 5,230,434$
2023 3.45% 5,410,884$
Homestead Doc Stamp converted CY to FY
95% 90% 85%
High Middle Low
2017-18 4,217,313$ 3,995,349$ 3,773,385$
2018-19 4,385,876$ 4,155,041$ 3,924,205$
2019-20 4,550,264$ 4,310,776$ 4,071,289$
2020-21 4,715,191$ 4,467,023$ 4,218,855$
2021-22 4,883,738$ 4,626,699$ 4,369,660$
2022-23 5,054,626$ 4,788,593$ 4,522,560$
Doc Stamp Exemption for Homesteads Impact
High Middle Low
Year Cash Recurring Cash Recurring Cash Recurring
2018-19 (4.4 M)$ $ (4.4 M) (4.2 M)$ $ (4.2 M) (3.9 M)$ $ (3.9 M)
2019-20 (4.6 M)$ $ (4.6 M) (4.3 M)$ $ (4.3 M) (4.1 M)$ $ (4.1 M)
2020-21 (4.7 M)$ $ (4.7 M) (4.5 M)$ $ (4.5 M) (4.2 M)$ $ (4.2 M)
2021-22 (4.9 M)$ $ (4.9 M) (4.6 M)$ $ (4.6 M) (4.4 M)$ $ (4.4 M)
2022-23 (5.1 M)$ $ (5.1 M) (4.8 M)$ $ (4.8 M) (4.5 M)$ $ (4.5 M)
9/22/201712
Non-Homestead Transfers
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A B C D E F G
All Non-Homestead Sales Between Related Parties (Sale Qualification Code = 30) above De Minimus Transfer Value
Non-Homestead as of January 1, 2016. Sales data and Doc Stamps Paid from 2016 sales.
Natural Person Trust (1=Trust in name) Sum of Doc Stamps Paid Sum of Sales Price Count
0 0 18,500,514$ 2,697,022,804$ 4,701
0 1 685,148$ 97,988,742$ 302
1 0 6,573,745$ 950,489,472$ 6,232
1 1 936,510$ 133,787,137$ 519
Total Non-Homestead Doc Stamp 26,695,917$
Non-Homestead Doc only Natural Person 7,510,255$
Non-Homestead Doc Natural Person no Trusts 6,573,745$
Doc Stamp CY Growth Rates
(calculated from GR 8/17) CY Documentary Stamps
2017 5.25% 7,904,543$
2018 4.15% 8,232,582$
2019 3.85% 8,549,536$
2020 3.65% 8,861,594$
2021 3.60% 9,180,612$
2022 3.55% 9,506,523$
2023 3.45% 9,834,498$
Non-Homestead Doc Stamp converted CY to FY
60% 40% 20%
High Middle Low
2017-18 4,841,138$ 3,227,425$ 1,613,713$
2018-19 5,034,635$ 3,356,424$ 1,678,212$
2019-20 5,223,339$ 3,482,226$ 1,741,113$
2020-21 5,412,662$ 3,608,441$ 1,804,221$
2021-22 5,606,140$ 3,737,427$ 1,868,713$
2022-23 5,802,307$ 3,868,204$ 1,934,102$
Doc Stamp Exemption for Non-Homestead Impact
High Middle Low
Year Cash Recurring Cash Recurring Cash Recurring
2018-19 (5.0 M)$ $ (5.0 M) (3.4 M)$ $ (3.4 M) (1.7 M)$ $ (1.7 M)
2019-20 (5.2 M)$ $ (5.2 M) (3.5 M)$ $ (3.5 M) (1.7 M)$ $ (1.7 M)
2020-21 (5.4 M)$ $ (5.4 M) (3.6 M)$ $ (3.6 M) (1.8 M)$ $ (1.8 M)
2021-22 (5.6 M)$ $ (5.6 M) (3.7 M)$ $ (3.7 M) (1.9 M)$ $ (1.9 M)
2022-23 (5.8 M)$ $ (5.8 M) (3.9 M)$ $ (3.9 M) (1.9 M)$ $ (1.9 M)
9/22/201713
REVENUE ESTIMATING CONFERENCE Tax: Ad Valorem Issue: Citrus Processing Tangible Personal Property Bill Number(s): Proposed Language Entire Bill Partial Bill: Sponsor(s): N/A Month/Year Impact Begins: July 1, 2018, Affecting 2019-20 Levies Date of Analysis: September 28, 2017 Section 1: Narrative a. Current Law: There is no current exemption for tangible personal property affected by citrus greening.
b. Proposed Change: The proposed language creates section 193.4516 F.S., 193.4516 Assessment of citrus packing and
processing equipment affected by citrus greening. - (1) For purposes of ad valorem taxation, tangible personal property owned and operated by a citrus fruit packing or
processing facility shall be deemed to have a market value no greater than its value for salvage provided: (a) The facility operated as a citrus fruit packing or processing facility prior to January 1, 2010; and (b) The tangible personal property is no longer used in the operation of the facility due to the effects of citrus greening. (2)(a) The exemption provided in subsection (1) remains effective until a citrus fruit packing or processing facility sells or
leases the equipment or returns the equipment to operational use. (b) As used in this section, the term “citrus” has the same definition as that provided in s. 581.011(7).
Section 2: Description of Data and Sources
Department of Agricultural and Consumer Services (DACS) data: Registered Cannery/Processors 2009-10, 2010-11, 2016-17, 2017-18 Registered Packing Houses 2009-10, 2010-11, 2016-17, 2017-18
2017 Tangible Personal Property (TPP) Tax rolls Discussions with industry representatives Section 3: Methodology (Include Assumptions and Attach Details) The lists of registered Packing Houses, and Cannery/Processors were used to isolate those registered entities that were in operation during 2010. The businesses were matched to the 2017 TPP tax roll to obtain their 2017 Just Values (JV). The industry representatives have provided the total boxes of citrus produced before and after citrus greening. This reduction amount is applied to all identified businesses except for those businesses that have been identified as being completely closed due to greening and the citrus stands. The citrus stands represent a small piece of the total TPP, and we expect that they will be able to keep all their equipment operating even with substantially reduced harvest numbers. The equipment affected by greening is assumed to be half way through its depreciable life, and the salvage value is assumed to be 20% of the replacement value. There are several projects underway to mitigate the spread of citrus greening and to breed resistant strains of citrus trees. It seems like the measures to limit the spread have been effective, but it doesn’t seem likely that the resistant trees would make a positive difference before the end of the impact period. Absent some clear direction, no growth or decay rates have been applied to the impact. The effective date is July 1, 2018, so the proposed change will apply to the 2019 tax rolls (2019-20 cash values).
Section 4: Proposed Fiscal Impact
High Middle Low
Cash Recurring Cash Recurring Cash Recurring
2018-19 $(7.2 M)
2019-20 $(7.2 M) $(7.2 M)
2020-21 $(7.2 M) $(7.2 M)
2021-22 $(7.2 M) $(7.2 M)
2022-23 $(7.2 M) $(7.2 M)
List of affected Trust Funds:
17
REVENUE ESTIMATING CONFERENCE Tax: Ad Valorem Issue: Citrus Processing Tangible Personal Property Bill Number(s): Proposed Language Section 5: Consensus Estimate (Adopted: 09/28/2017) : The Conference adopted the proposed estimate for FY 2018-19 and grew the forecast by 5% for each year there after.
School Non-School Total Local/Other
Cash Recurring Cash Recurring Cash Recurring
2018-19 0.0 (2.8) 0.0 (4.4) 0.0 (7.2)
2019-20 (2.9) (2.9) (4.6) (4.6) (7.5) (7.5)
2020-21 (3.1) (3.1) (4.8) (4.8) (7.9) (7.9)
2021-22 (3.2) (3.2) (5.1) (5.1) (8.3) (8.3)
2022-23 (3.4) (3.4) (5.3) (5.3) (8.7) (8.7)
GR Trust Local/Other Total
Cash Recurring Cash Recurring Cash Recurring Cash Recurring
2018-19 0.0 0.0 0.0 0.0 0.0 (7.2) 0.0 (7.2)
2019-20 0.0 0.0 0.0 0.0 (7.5) (7.5) (7.5) (7.5)
2020-21 0.0 0.0 0.0 0.0 (7.9) (7.9) (7.9) (7.9)
2021-22 0.0 0.0 0.0 0.0 (8.3) (8.3) (8.3) (8.3)
2022-23 0.0 0.0 0.0 0.0 (8.7) (8.7) (8.7) (8.7)
18
Proposed Language - Citrus Processing TPP
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
A B C D E
CY 2017 TPP Roll Values
Citrus Production summary
Number of Boxes % reduced
Before Greening 30,000,000
After Citrus Greening 8,000,000 -73.3%
After Hurricane Irma 5,000,000 -37.5%
Citrus Processors by Activity
Row Labels
Sum of Furniture Fixtures and
Equipment JV Sum of Just Value (JV)
Production reductions due
to Citrus Greening
JV of affected
equipment
Blender 95,282,826$ 96,956,313$ -73.3% (71,101,296)$
Processor 766,971,983$ 794,539,083$ -73.3% (582,661,994)$
Stand 1,003,692$ 1,003,692$ 0.0% -$
Unknown 3,337,226$ 3,427,891$ -73.3% (2,513,787)$
Grand Total 866,595,727$ 895,926,979$ (656,277,077)$
Citrus Packing Houses By Status
Row Labels
Sum of Furniture Fixtures and
Equipment JV Sum of Just Value (JV)
Production reductions due
to Citrus Greening
JV of affected
equipment
Citrus packing 12,770,784$ 12,897,835$ -73.3% (9,458,412)$
Closed_Greening 5,416,547$ 5,854,325$ -100.0% (5,854,325)$
Grand Total 18,187,331$ 18,752,160$ (15,312,737)$
Total Just Value of Equipment that has been affected by Citrus Greening (671,589,814)$
Salvage Value % 20.0%
Value of Exemption* (402,953,889)$
*E22*(1-(2*E23))
2016 Millage Rate (School) 6.955
2016 Millage Rate (Non-School) 10.824
9/28/201719
Proposed Language - Citrus Processing TPP
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
A B C D E
Year Growth JV of affected equipment
2018 0% (402,953,889)$
2019 2.5% (413,027,736)$
2020 5% (433,679,123)$
2021 5% (455,363,079)$
2022 5% (478,131,233)$
2023 5% (502,037,794)$
Impact (School) Middle
Year Cash Recurring
2018-19 $ (2.8 M)
2019-20 (2.9 M)$ $ (2.9 M)
2020-21 (3.1 M)$ $ (3.1 M)
2021-22 (3.2 M)$ $ (3.2 M)
2022-23 (3.4 M)$ $ (3.4 M)
Impact (Non-School) Middle
Year Cash Recurring
2018-19 $ (4.4 M)
2019-20 (4.6 M)$ $ (4.6 M)
2020-21 (4.8 M)$ $ (4.8 M)
2021-22 (5.1 M)$ $ (5.1 M)
2022-23 (5.3 M)$ $ (5.3 M)
Total Impact Middle
Year Cash Recurring
2018-19 -$ $ (7.2 M)
2019-20 (7.5 M)$ $ (7.5 M)
2020-21 (7.9 M)$ $ (7.9 M)
2021-22 (8.3 M)$ $ (8.3 M)
2022-23 (8.7 M)$ $ (8.7 M)
9/28/201720
Proposed Language - Eligible Businesses
1
2
3
4
5
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7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
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25
26
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28
29
30
31
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39
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43
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46
47
48
49
50
51
52
A B E H Q S BQ
County NumberCounty Name Owner Name NAICS code
Furniture Fixtures
and Equipment JV Just Value (JV) Business Type
45 Lake CITRUS WORLD INC 311411 4,096,590$ 4,096,590$ Blender
45 Lake SUNSATIONAL CITRUS INC 488991 255,601$ 255,601$ Citrus packing
45 Lake SUNSATIONAL CITRUS INC 445230 24,347$ 24,347$ Citrus packing
45 Lake CITRUS WORLD INC 311411 2,650,000$ 2,650,000$ Processor
45 Lake SILVER SPRINGS CITRUS INC 311411 14,457,620$ 14,457,620$ Processor
45 Lake CUTRALE CITRUS JUICES USA INC 311411 10,540,123$ 10,540,123$ Processor
62 Pinellas THE COCA-COLA COMPANY 311930 33,954,493$ 33,954,493$ Processor
41 Indian River QUALITY FRUIT PACKER OF IR I 115114 580,820$ 590,043$ Citrus packing
41 Indian River RIVERFRONT PACKING CO LLC 115114 683,051$ 683,051$ Citrus packing
41 Indian River INDIAN RIVER EXCHANGE PKRS I 115114 250,814$ 250,814$ Citrus packing
59 Osceola JOSEPH ELYCE 814190 488$ 488$ Processor
66 St. Lucie Tropicana Manufacturing Co Inc 311411 124,931,213$ 124,931,213$ Processor
60 Palm Beach WENONAH LLC 531110 750$ 750$ Processor
39 Hillsborough MARJON SPECIALTY FOODS INC 311999 883,180$ 883,180$ Stand
74 Volusia T G LEE FOODS INC 424430 5,582,763$ 5,582,763$ Blender
66 St. Lucie Rio Citrus Inc 311411 460,609$ 460,609$ Citrus packing
23 Miami-Dade MCARTHUR DAIRY LLC 112990 11,185,296$ 11,185,296$ Blender
69 Seminole FLORIDA NATURAL FLAVORS INC 311930 161,205$ 161,205$ Blender
39 Hillsborough SUNSHINE STATE DAIRY FARMS LLC 311999 4,186,806$ 4,186,806$ Blender
59 Osceola NANDA RADESH 531110 63$ 63$ Unknown
60 Palm Beach AMERIGAS PROPANE LP 486990 156$ 156$ Unknown
66 St. Lucie Freshco Ltd 111219 1,585,489$ 1,664,488$ Unknown
52 Marion HOPE PLUMMER JR 112990 992$ 992$ Processor
66 St. Lucie Orchid Island Juice Co Inc 311411 2,490,077$ 2,490,077$ Processor
59 Osceola SINGH NARESH BRIDGEMOHAN 531110 1,833$ 1,833$ Processor
41 Indian River LAMBETH CITRUS LTD 111310 142,377$ 142,377$ Processor
66 St. Lucie Orchid Island Juice Co 311411 205,527$ 205,527$ Processor
41 Indian River GREENE RIVER PACKING INC 115114 544,937$ 544,937$ Closed_Greening
41 Indian River BAILES, EMORY J II 561730 9,528$ 9,528$ Citrus packing
41 Indian River IMG CITRUS INC 115114 2,046,168$ 2,046,168$ Citrus packing
41 Indian River PREMIER CITRUS PACKERS LLC 115114 2,252,546$ 2,255,473$ Citrus packing
15 Brevard WPL PAINTING LLC 238320 2,000$ 2,000$ Citrus packing
59 Osceola ENVISION EYECARE 621320 14,153$ 14,153$ Citrus packing
66 St. Lucie DLF Packing LLC 311411 759,179$ 759,179$ Citrus packing
39 Hillsborough M & B PRODUCTS INC 311999 7,395,331$ 7,395,331$ Blender
39 Hillsborough TAMPA JUICE SERVICE INC 523140 646,510$ 704,950$ Blender
24 DeSoto EMERALD PACKING CO LLC 111310 30,625$ 30,625$ Citrus packing
53 Martin LOUIS DREYFUS CITRUS INC 111310 3,378,000$ 3,378,000$ Processor
63 Polk BEN HILL GRIFFIN INC 111310 107,055$ 107,718$ Closed_Greening
63 Polk BEN HILL GRIFFIN INC 111310 -$ 1,452$ Closed_Greening
63 Polk RIDGE ISLAND GROVES 311421 8,760$ 8,760$ Citrus packing
63 Polk PACKING HOUSE 115115 19,950$ 19,950$ Citrus packing
74 Volusia T G LEE FOODS INC 424430 27,539$ 27,539$ Blender
24 DeSoto PEACE RIVER CITRUS PRODUCTS IN 311411 13,728,850$ 14,974,043$ Processor
63 Polk SUNBURST CITRUS CO INC 523140 14,755$ 15,084$ Citrus packing
63 Polk CUTRALE CITRUS JUICES USA INC 311421 9,014$ 10,105$ Processor
63 Polk BLUE RIBBON CITRUS PACKERS INC 488991 46,447$ 48,369$ Citrus packing
63 Polk CITROSUCO NORTH AMERICA INC 311421 18,145,995$ 19,109,704$ Processor
63 Polk FLORIDA NATURAL GROWERS 311421 59,494,867$ 61,634,337$ Processor
63 Polk CUTRALE CITRUS JUICES USA INC 311411 53,820,054$ 61,517,882$ Processor
63 Polk DUNDEE CITRUS GROWERS ASSOCIAT 311421 1,531,440$ 1,536,444$ Citrus packing
9/28/201721
Proposed Language - Eligible Businesses
1
A B E H Q S BQ
County NumberCounty Name Owner Name NAICS code
Furniture Fixtures
and Equipment JV Just Value (JV) Business Type
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
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80
81
82
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85
86
87
88
89
63 Polk LAKELAND COLD STORAGE LLLP 493120 252,405$ 287,938$ Blender
63 Polk BEN HILL GRIFFIN INC 311421 1,492,584$ 1,499,824$ Closed_Greening
63 Polk BEN HILL GRIFFIN INC 311421 146,074$ 161,116$ Closed_Greening
63 Polk HAINES CITY CITRUS GROWERS ASS 112910 748,277$ 749,870$ Closed_Greening
63 Polk HUNT BROS COOP 311421 910,134$ 1,320,196$ Closed_Greening
63 Polk REFRESCO US INC 311421 13,529,000$ 13,809,466$ Blender
63 Polk PEACE RIVER PACKING COMPANY 311421 362,059$ 441,339$ Citrus packing
63 Polk ROE WILLIAM G CO 311421 2,140,633$ 2,140,633$ Citrus packing
63 Polk ALL TEMP STORAGE 311421 546,117$ 581,866$ Blender
63 Polk BORDEN DAIRY CO OF FLA 311999 3,895,204$ 4,533,346$ Blender
63 Polk BORDEN DAIRY CO OF FLA 311520 139,148$ 139,148$ Blender
63 Polk PEACE RIVER CITRUS 311421 327,921$ 426,805$ Processor
63 Polk DUNDEE CITRUS GROWERS ASSOCIAT 311421 759,949$ 788,315$ Citrus packing
63 Polk COCA COLA COMPANY 312111 136,120,316$ 151,522,912$ Processor
63 Polk SUN ORCHARD LLC 488991 1,717,276$ 1,735,605$ Processor
63 Polk PEACE RIVER CITRUS PRODUCTS IN 311421 163,111$ 788,268$ Blender
63 Polk L X REAL ESTATE COMPANY LLC 311421 463,758$ 463,758$ Blender
63 Polk BEN HILL GRIFFIN INC 311421 113,515$ 115,241$ Closed_Greening
23 Miami-Dade BORDEN DAIRY CO OF FL LLC 311511 4,330,388$ 4,330,388$ Blender
74 Volusia ARDMORE FARMS INC 311411 12,522,857$ 12,522,857$ Blender
51 Manatee TROPICANA PRODUCTS INC 311411 40,000,000$ 40,000,000$ Processor
51 Manatee TROPICANA PRODUCTS INC 311411 151,624,062$ 151,624,062$ Processor
52 Marion KMC CITRUS ENTERPRISES INC 424490 120,512$ 120,512$ Stand
36 Hendry SOUTHERN GARDENS CITRUS JUIC 311421 36,359,079$ 36,359,079$ Processor
36 Hendry SOUTHERN GARDENS CITRUS GROV 111310 2,400,965$ 2,400,965$ Processor
36 Hendry PEACE RIVER CITRUS PROD INC 311421 2,280,828$ 2,280,828$ Blender
46 Lee KING BRANDS LLC 311999 1,713,572$ 1,717,221$ Unknown
16 Broward COUNTY SODA SYSTEMS 424490 37,946$ 45,963$ Unknown
16 Broward KENNESAW 311411 745,241$ 745,241$ Processor
16 Broward PUBLIX SUPERMARKET #348 445110 905,431$ 905,431$ Blender
16 Broward PUBLIX SUPERMARKET #10000 445110 21,058,730$ 21,058,730$ Blender
61 Pasco CUTRALE CITRUS JUICES USA, INC 311411 1,044,212$ 1,044,212$ Processor
18 Charlotte THE PACKERS OF INDIAN RIVER 111310 315,580$ 315,580$ Closed_Greening
58 Orange COCA COLA CO 312111 58,680,638$ 58,680,638$ Processor
58 Orange CONOLEY CITRUS PACKERS INC 424480 517,350$ 517,350$ Citrus packing
58 Orange HELLER BROTHERS PACKING CORP 311991 1,038,391$ 1,038,391$ Closed_Greening
58 Orange LOUIS DREYFUS CITRUS INC 311411 1,913,809$ 1,913,809$ Blender
9/28/201722
REVENUE ESTIMATING CONFERENCE Tax: Documentary Stamp Tax Issue: Spousal Transfers – Homestead Property – Mortgage is Only Consideration Bill Number(s): SB 312 Entire Bill Partial Bill: Sponsor(s): Sen. Steube Month/Year Impact Begins: July 1, 2018 Date of Analysis: 9/28/2017 Section 1: Narrative a. Current Law: Section 201.02(1)(a), Florida Statutes, states “On deeds, instruments, or writings whereby any lands, tenements,
or other real property, or any interest therein, shall be granted, assigned, transferred, or otherwise conveyed to, or vested in, the purchaser or any other person by his or her direction, on each $100 of the consideration therefor the tax shall be 70 cents. When the full amount of the consideration for the execution, assignment, transfer, or conveyance is not shown in the face of such deed, instrument, document, or writing, the tax shall be at the rate of 70 cents for each $100 or fractional part thereof of the consideration therefor. For purposes of this section, consideration includes, but is not limited to, the money paid or agreed to be paid; the discharge of an obligation; and the amount of any mortgage, purchase money mortgage lien, or other encumbrance, whether or not the underlying indebtedness is assumed. If the consideration paid or given in exchange for real property or any interest therein includes property other than money, it is presumed that the consideration is equal to the fair market value of the real property or interest therein.” Section 201.02(7), F.S., reads “Taxes imposed by this section do not apply to a deed, transfer, or conveyance between spouses or former spouses pursuant to an action for dissolution of their marriage wherein the real property is or was their marital home or an interest therein. Taxes paid pursuant to this section shall be refunded in those cases in which a deed, transfer, or conveyance occurred 1 year before a dissolution of marriage. This subsection applies in spite of any consideration as defined in subsection (1). This subsection does not apply to a deed, transfer, or conveyance executed before July 1, 1997.”
b. Proposed Change: Amends section 201.02(7), F.S., to create a new subparagraph “(b) A deed or other instrument that
transfers or conveys homestead property or any interest in homestead property only between spouses, if the only consideration for the transfer or conveyance is the amount of a mortgage or other lien encumbering the homestead property at the time of the transfer or conveyance and if the transfer or conveyance is recorded within 1 year after the date of the marriage. This paragraph applies to transfers or conveyances from one spouse to another, from one spouse to both spouses, or from both spouses to one spouse.”
Section 2: Description of Data and Sources
2015 Ad Valorem Tax Rolls 2016 Ad Valorem Tax Rolls 2017 Ad Valorem Tax Rolls (sales data files and real property rolls) General Revenue Consensus Estimating Conference Documentary Stamp Tax Growth Rates, August 2017
Section 3: Methodology (Include Assumptions and Attach Details)
After merging the real property information into all 2016 property transfers from the sales data file, all sales that were not between related parties were removed. These were filtered out based on Sale Qualification Code 30, which is defined as a “transfer involving affiliated parties (examples: family, corporate, business, landlord-tenant).” From the remaining records, multi-parcel sales were winnowed to a single record, which was needed to avoid over-counting the documentary stamps paid in a single transaction. If one parcel in a multi-parcel sale had a homestead classification in the sale year, that parcel was kept. Three additional filters removed any records with:
1. a sale price of $100 or less. The documentary stamp amount is based on the consideration, which includes “the amount of any mortgage, purchase money mortgage lien, or other encumbrance,” (section 201.02(1)(a)). Properties with consideration of $100 or less were excluded due to lack of a mortgage or other debt.
2. a governmental land use code or an exemption for constitutional charitable predominant use (under section 196.196), as these transactions could not take place between spouses.
3. no value classified as homestead (based on the value in the 2016 Just Value – Homestead field). Flags were added to the homestead records based on the Owner Name fields from before and after the sale. Names with words or abbreviations denoting a business are excluded from the “Natural Persons” value. Names containing “Trust” were separated into a subset.
X
23
REVENUE ESTIMATING CONFERENCE Tax: Documentary Stamp Tax Issue: Spousal Transfers – Homestead Property – Mortgage is Only Consideration Bill Number(s): SB 312
The sale price as a percentage of the 2017 just value was calculated (= Sale Price / Just Value 2017P). The records were then divided into three groups: those with a sale price greater than just value, those with a sale price more than 60% and up to 100% of just value, and those with a sale price up to 60% of just value. Only the last group is included in the impact calculation, under the assumption that most transfers between newlywed spouses of homestead property would be for partial, not whole, interest and that sale prices over 60% include consideration in addition to a mortgage or lien. Documentary stamp amounts were calculated from the sale price. Growth rates were taken from the General Revenue Consensus Estimating Conference in August 2017. Due to the broad definition of the Sales Qualification Code, estimates assume that some percentage of the sales took place among parties whose relationship was not spousal. The impact assumes 95% of documentary stamps paid are from transactions between spouses in the high estimate, 90% in the middle, and 85% in the low. The proposed language would take effect July 1, 2018.
Section 4: Proposed Fiscal Impact
High Middle Low
Cash Recurring Cash Recurring Cash Recurring
2018-19 $ (1.7 M) $ (1.7 M) $ (1.6 M) $ (1.6 M) $ (1.5 M) $ (1.5 M)
2019-20 $ (1.8 M) $ (1.8 M) $ (1.7 M) $ (1.7 M) $ (1.6 M) $ (1.6 M)
2020-21 $ (1.8 M) $ (1.8 M) $ (1.8 M) $ (1.8 M) $ (1.7 M) $ (1.7 M)
2021-22 $ (1.9 M) $ (1.9 M) $ (1.8 M) $ (1.8 M) $ (1.7 M) $ (1.7 M)
2022-23 $ (2.0 M) $ (2.0 M) $ (1.9 M) $ (1.9 M) $ (1.8 M) $ (1.8 M)
List of affected Trust Funds:
Documentary Stamp Trust Fund Group Section 5: Consensus Estimate (Adopted: 09/28/2017): The Conference adopted the low estimate.
GR Trust Local/Other Total
Cash Recurring Cash Recurring Cash Recurring Cash Recurring
2018-19 (0.6) (0.6) (0.9) (0.9) 0.0 0.0 (1.5) (1.5)
2019-20 (0.6) (0.6) (1.0) (1.0) 0.0 0.0 (1.6) (1.6)
2020-21 (0.7) (0.7) (1.0) (1.0) 0.0 0.0 (1.7) (1.7)
2021-22 (0.7) (0.7) (1.0) (1.0) 0.0 0.0 (1.7) (1.7)
2022-23 (0.7) (0.7) (1.1) (1.1) 0.0 0.0 (1.8) (1.8)
24
Impact Summary
1
2
3
4
5
6
7
8
9
10
A B C D E F G
All Sales Between related parties (Qual code = 30) above De Minimus Transfer value
Spousal Transfer of Homesteads Doc Stamp Impact
High Middle Low
Year Cash Recurring Cash Recurring Cash Recurring
2018-19 (1.7 M)$ $ (1.7 M) (1.6 M)$ $ (1.6 M) (1.5 M)$ $ (1.5 M)
2019-20 (1.8 M)$ $ (1.8 M) (1.7 M)$ $ (1.7 M) (1.6 M)$ $ (1.6 M)
2020-21 (1.8 M)$ $ (1.8 M) (1.8 M)$ $ (1.8 M) (1.7 M)$ $ (1.7 M)
2021-22 (1.9 M)$ $ (1.9 M) (1.8 M)$ $ (1.8 M) (1.7 M)$ $ (1.7 M)
2022-23 (2.0 M)$ $ (2.0 M) (1.9 M)$ $ (1.9 M) (1.8 M)$ $ (1.8 M)
9/22/201725
Homestead Transfers
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
A B C D E F G
All Homestead Sales Between Related Parties (Sale Qualification Code = 30) above De Minimus Transfer Value
Homestead as of January 1 2016. Sales data and Doc Stamps Paid from 2016 sales.
Natural Person Trust (1=Trust in name) Sum of Doc Stamps Paid Sum of Sales Price Count
0 0 206,450$ 29,935,906$ 164
0 1 9,156$ 1,308,000$ 7
1 0 3,899,588$ 566,008,548$ 4,488
1 1 232,511$ 33,215,793$ 155
Total Homestead Doc Stamp 4,347,705$
Homestead Doc only Natural Person 4,132,099$
Homestead Doc Natural Person no Trusts 3,899,588$
Sales Price Groups (Sale Price Relative to 2017 Just Value)
Group Documentary Stamps Sale Count Documentary Stamps Sale Count
Over 100% 126,207$ 52 1,411,518$ 748
over 60%, up to 100% 67,131$ 49 910,475$ 865
60% or less 39,173$ 54 1,577,596$ 2,875
Total 60% or Less (including Trusts) 1,616,769$
Doc Stamp CY Growth Rates
(calculated from GR 8/17) CY Documentary Stamps
2017 5.25% 1,701,650$
2018 4.15% 1,772,268$
2019 3.85% 1,840,501$
2020 3.65% 1,907,679$
2021 3.60% 1,976,355$
2022 3.55% 2,046,516$
2023 3.45% 2,117,121$
Documentary Stamp amount converted CY to FY
95% 90% 85%
High Middle Low
2017-18 1,650,111$ 1,563,263$ 1,476,415$
2018-19 1,718,591$ 1,628,138$ 1,537,686$
2019-20 1,784,756$ 1,690,822$ 1,596,887$
2020-21 1,849,900$ 1,752,537$ 1,655,174$
2021-22 1,916,496$ 1,815,628$ 1,714,760$
2022-23 1,984,532$ 1,880,083$ 1,775,634$
Doc Stamp Exemption for Homesteads Impact
High Middle Low
Year Cash Recurring Cash Recurring Cash Recurring
2018-19 (1.7 M)$ $ (1.7 M) (1.6 M)$ $ (1.6 M) (1.5 M)$ $ (1.5 M)
2019-20 (1.8 M)$ $ (1.8 M) (1.7 M)$ $ (1.7 M) (1.6 M)$ $ (1.6 M)
2020-21 (1.8 M)$ $ (1.8 M) (1.8 M)$ $ (1.8 M) (1.7 M)$ $ (1.7 M)
2021-22 (1.9 M)$ $ (1.9 M) (1.8 M)$ $ (1.8 M) (1.7 M)$ $ (1.7 M)
2022-23 (2.0 M)$ $ (2.0 M) (1.9 M)$ $ (1.9 M) (1.8 M)$ $ (1.8 M)
Natural Persons (including Trusts) Natural Persons (excluding Trusts)
9/22/201726
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
A B C D E F G H I J K
All Homestead Sales Between Related Parties (Sale Qualification Code = 30) above De Minimus Transfer Value
Homestead as of January 1 2016. Sales data and Doc Stamps Paid from 2016 sales.
Sales between Natural Persons (including sales involving trusts)
DecileTotal Sale
Price
Doc Stamps
Paid
Sale
CountSale Price
Doc Stamps
Paid
Sale
Count
1 59,420,426 394,086 27 21,857,000 131,142 6
2 60,074,289 413,999 96 6,521,500 39,129 10
3 60,148,395 413,508 161 7,530,600 45,184 20
4 59,945,853 413,657 220 5,963,800 35,783 22
5 59,880,893 413,639 281 5,527,000 33,162 26
6 59,995,057 416,759 355 3,206,250 19,238 19
7 59,893,352 415,545 444 3,708,800 22,253 28
8 59,953,430 415,839 569 3,835,100 23,011 36
9 59,943,197 417,227 788 2,375,600 14,254 32
10 59,969,449 417,840 1,702 1,946,033 11,676 51
Total 599,224,341 4,132,099 4,643 62,471,683 374,832 250
* Miami-Dade's documentary stamp rate is 60 cents per $100. The rest of the state is 70 cents per $100.
Miami-Dade* SalesStatewide Sales
27
REVENUE ESTIMATING CONFERENCE Tax: Sales and Use Tax (EDR Analysis) Issue: Sales Tax Exemption for Diapers and Incontinence Products Bill Number(s): SB 56 Entire Bill Partial Bill: Sponsor(s): Sen. Book Month/Year Impact Begins: January 1, 2019 Date of Analysis: 9/28/2017 Section 1: Narrative a. Current Law: Currently there is no sales tax exemption for diapers and incontinence products.
b. Proposed Change: Creates a sales tax exemption for the sale for human use of diapers, incontinence undergarments,
incontinence pads, or incontinence liners. Section 2: Description of Data and Sources IBISWorld Industry Report OD5652 Diaper Manufacturing (April 2017) IBISWorld Industry Report OD5695 Online Baby Product Sales in the US (October 2016) Florida Demographic Estimating Conference, July 2017 U.S. Census Bureau, American Community Survey
Section 3: Methodology (Include Assumptions and Attach Details) This analysis uses the same methodology as a similar analysis adopted at the REC on March 3, 2017. The methodology uses national data on diaper manufacturing from IBISWorld report. Baby diapers are 68.8% of the industry total and adult diapers are 31.2% of the industry total. Baby diapers includes disposable diapers, training pants and cloth diapers. Adult diapers includes incontinence products such as adult diapers and pads for incontinence. The Florida share of baby diapers and adult diapers is calculated given the population of children 4 and under and the population of adults ages 65 and over. A 5% retail markup is applied to the estimated manufacturing industry revenue to calculate the total Florida Sales Tax Revenue from diapers and incontinence products. The growth in the population of children ages 0 to 4 and the growth in the adult population 65 and over is used to calculate the future years revenue from diapers and incontinence products. The estimated Florida sales tax revenue on diapers and incontinence products using this methodology is provided on line 15. Section 4: Proposed Fiscal Impact
High Middle Low
Cash Recurring Cash Recurring Cash Recurring
2018-19 ($22.1) ($52.9)
2019-20 ($54.0) ($54.0)
2020-21 ($55.2) ($55.2)
2021-22 ($56.4) ($56.4)
2022-23 ($57.5) ($57.5)
List of affected Trust Funds: General Sales and Use Tax Grouping Section 5: Consensus Estimate (Adopted: 09/28/2017): The Conference adopted the proposed estimate.
GR Trust Revenue Sharing Local Half Cent
Cash Recurring Cash Recurring Cash Recurring Cash Recurring
2018-19 (19.6) (46.9) (Insignificant) (Insignificant) (0.7) (1.6) (1.9) (4.5)
2019-20 (47.8) (47.8) (Insignificant) (Insignificant) (1.6) (1.6) (4.6) (4.6)
2020-21 (48.9) (48.9) (Insignificant) (Insignificant) (1.6) (1.6) (4.7) (4.7)
2021-22 (49.9) (49.9) (Insignificant) (Insignificant) (1.7) (1.7) (4.8) (4.8)
2022-23 (50.9) (50.9) (Insignificant) (Insignificant) (1.7) (1.7) (4.9) (4.9)
X
28
REVENUE ESTIMATING CONFERENCE Tax: Sales and Use Tax (EDR Analysis) Issue: Sales Tax Exemption for Diapers and Incontinence Products Bill Number(s): SB 56
Local Option Total Local Total
Cash Recurring Cash Recurring Cash Recurring
2018-19 (2.5) (6.0) (5.0) (12.0) (24.6) (58.9)
2019-20 (6.1) (6.1) (12.3) (12.3) (60.1) (60.1)
2020-21 (6.2) (6.2) (12.5) (12.5) (61.4) (61.4)
2021-22 (6.3) (6.3) (12.8) (12.8) (62.7) (62.7)
2022-23 (6.5) (6.5) (13.1) (13.1) (64.0) (64.0)
29
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
A B C D E F G H
Sales Tax Exemption for Diapers and Incontinence Products
IBISWorld - US Manufacturing Diaper Industry Data
FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 FY22-23
Total Industry Revenue in U.S. 12,714,400,000
Baby Diapers* Industry Revenue (68.8% of total) 8,747,507,200
Florida Share of Revenue (5.6%) 518,388,442
Florida Sales Tax Revenue - Baby Diapers** 31,103,307 31,496,689 31,884,724 32,305,676 32,742,221 33,887,365
Adult Diapers* Industry Revenue (31.2% of total) 3,966,892,800
Florida Share of Revenue (8.3%) 346,214,492
Florida Sales Tax Revenue - Adult Diapers & Incontience
Products** 20,772,870 21,439,140 22,102,122 22,851,540 23,650,762 23,650,762
Total Estimated Florida Sales Tax Revenue on Diapers &
Incontinence Products 51,876,176 52,935,829 53,986,845 55,157,216 56,392,983 57,538,126
*Baby diapers includes disposable diapers, training pants and cloth diapers. Adult diapers includes incontinence products such as adult diapers and pads for incontinence.
**Estimated Sales Tax Revenue assumes a 5.0% retail markup on diapers and incontinence products. Based on IBISWorld report, the average profit margin in
the baby product market is 5.0%. The baby product market includes retailers who sell baby products.
30
REVENUE ESTIMATING CONFERENCE Tax: Sales and Use Tax Issue: Private Investigative Services Exemption Bill Number(s): Proposed Language Entire Bill Partial Bill: Sponsor(s): Month/Year Impact Begins: July 1, 2018 Date of Analysis: 9/28/2017 Section 1: Narrative
a. Current Law: Under s.212.05 (1) F.S., For the exercise of such privilege, a tax is levied on each taxable transaction or incident, which tax is due and payable as follows:
(i)1: At the rate of 6 percent on charges for all: a. Detective, burglar protection, and other protection services (NAICS National Numbers 561611, 561612, 561613, and 561621).
s.212.05 (1) (i) F.S., 4. If a transaction involves both the sale or use of a service taxable under this paragraph and the sale or use of a service or any other item not taxable under this chapter, the consideration paid must be separately identified and stated with respect to the taxable and exempt portions of the transaction or the entire transaction shall be presumed taxable. The burden shall be on the seller of the service or the purchaser of the service, whichever applicable, to overcome this presumption by providing documentary evidence as to which portion of the transaction is exempt from tax. The department is authorized to adjust the amount of consideration identified as the taxable and exempt portions of the transaction; however, a determination that the taxable and exempt portions are inaccurately stated and that the adjustment is applicable must be supported by substantial competent evidence. s. 493.6101 (15) F.S.,” Private investigative agency” means any person who, for consideration, advertises as providing or is engaged in the business of furnishing private investigations. (16) “Private investigator” means any individual who, for consideration, advertises as providing or performs private investigation. This does not include an informant who, on a one-time or limited basis, as a result of a unique expertise, ability, vocation, or special access and who, under the direction and control of a Class “C” licensee or a Class “MA” licensee, provides information or services that would otherwise be included in the definition of private investigation. From Florida Department of Agriculture website: A private investigator is any individual or agency who, for consideration, advertises as providing or performs the following activities. Individuals or agencies providing or advertising as providing these services for consideration must be licensed.
Subcontracting with the government to determine crimes or wrongs done or threatened against the United States
Determining the identity, habits, conduct, movements, whereabouts, affiliations, associations, transactions, reputation or character of any society, person, or group of persons
The credibility of witnesses or other persons
The whereabouts of missing persons, owners of abandoned or escheated property, or heirs to estates
The location or recovery of lost or stolen property
The causes or origin of fires, libels, slanders, losses, accidents, damage, or injuries to real or personal property
Securing evidence to be used before investigating committees or boards of award or arbitration or trial of civil or criminal cases
b. Proposed Change: Under s.212.05. (1) F.S., For the exercise of such privilege, a tax is levied on each taxable transaction or
incident, which tax is due and payable as follows: (i)1: At the rate of 6 percent on charges for all: a. Detective, burglar protection, and other protection services (NAICS National Numbers 561611(excluding private investigative services), 561612, 561613, and 561621).
In addition, the following is added to s.212.05. (1) (i) 1 a F.S.: Private investigative services means those services related solely to private investigations, as licensed under the definitions set forth in sections 493.6101(15)-(16).
Section 2: Description of Data and Sources Calendar Year 2015 & 2016 Sales Tax Data specific NAICS codes:
X
31
REVENUE ESTIMATING CONFERENCE Tax: Sales and Use Tax Issue: Private Investigative Services Exemption Bill Number(s): Proposed Language 561611 - Entities engaged in providing investigation and detective services.
561612 - Entities engaged in providing guard and patrol services, such as bodyguard, guard dog, and parking security services. 561613 - Entities engaged in picking up and delivering money, receipts, or other valuable items. These establishments maintain personnel and equipment to protect such properties while in transit. 561621 - Entities engaged in (1) selling security alarm systems, such as burglar and fire alarms, along with installation, repair, or monitoring services or (2) remote monitoring of electronic security alarm systems.
August 2017 General Revenue – Consumer Non-Durables Growth Rates Florida Administrative Code 12a-1.0092 Detective, Burglar Protection, and Other Protection Services. Florida Department of Agriculture Kind Code – NAICS crosswalk Section 3: Methodology (Include Assumptions and Attach Details)
a. Analysis 1: Per s.212.05 (1) (i) 4, any exempt service must be separately stated to receive the exemption. If there are taxable
services and exempt services billed together, the entire service becomes taxable. The exemption inures to the specific nature of the service. As an example, polygraph services are specifically taxable and credit reporting services are specifically exempt. For all services covered under s.212.05 (1) (i) 1. a, the businesses engaged in these areas provide a mixture of taxable and exempt services. Even with the proposed change, the taxable services (polygraph, fingerprint, bodyguard, etc.) under this section remain taxable even when they are provided by a licensed private investigator because they are not considered private investigative services.
First, the taxable sales for entities in NAICS codes 561611, 561612, 561613, and 561621 were obtained from the Department’s Sales Tax Data. The taxable sales were filtered by entity name into three groups based on keywords from the Florida Administrative Code of 12a-1.0092 which lists the taxable and non-taxable activities associated with the four NAICS codes. Once the filtering keywords are applied, three groups are formed. Group A are the Taxable Activities listed in rule 12a-1.0092. Group B are entities that appear to perform Investigations. Group C is the remaining unknown entities that perform the activity but fail to fall in to either Group A or B. All three groups are engaged in taxable and exempt activities in various proportions. Businesses that appear to be primarily armored car services or security guard services also show lower exempt sales tax amounts. This filtering process is applied all four NAICS groups.
Based on what we observed in the tax data related to taxable verses exempt activities, adjustment factors were applied to create a cohort of potentially newly exempt tax base. Percentages for the High, Middle, and low estimates are divided into two groups between the four NAICS codes. NAICS 561611 contains the most amount of Private Investigator firms among the four NAICS codes.
For Group A, it is assumed that 10% of the taxable activities are related to Private Investigation services in the high estimate. The middle and low estimates assume 5% and 1% of activities are exempt.
For Group B, it is assumed that 100% of the taxable activities are related to private investigations services that will become exempt given the change in law. The middle and low estimates assume 95% and 90% of activities are exempt.
For Group C, it is assumed that 25% of the taxable activities is related to the private investigation services. The middle and low estimates assume 10% and 5% are exempt.
For NAICS Code groups 561612, 561613, and 561621, the activities are designated different to 561611, but contain
entities that perform private investigations. As these are NAICS codes indirectly related to private investigator activities, Group B, those that engage in investigative activities and located in the other three codes are assumed to engage in 5% of their activities as private investigators in the High estimate. Group B, In the middle and low are assumed 3.5% and 1% respectively. It is assumed that 3% of Group C, which engage in unknown activities in the three codes, engages in private investigations in the High estimate, 2% in the middle, and 0.5% in the low. For these three NAICS codes, Group A is not included as they appear to be primarily engaged in their respective NAICS code activity.
The growth rates were chosen for the High, Middle, and Low using the General Revenue adopted growth rates for Consumer Non-Durables in which Private Investigations is located. There is a one month lag to collections, and the first-year cash is equal to eleven months of the recurring.
32
REVENUE ESTIMATING CONFERENCE Tax: Sales and Use Tax Issue: Private Investigative Services Exemption Bill Number(s): Proposed Language
b. Analysis 2: This analysis approaches the impact starting with the total number of applicable licensees in the State of Florida. The High, Middle, and Low estimates are based on yearly hours of investigative work and assigned percentages to proportion said work as In-State activity. In the High, 60% of 2000 hours of activity of the licensee population activities is performed in-state. The middle assumes 50% of 1500 hours, and the low assumes 40% of 1250 hours. These percentages are multiplied with the yearly hours and total number of Licensees to obtain the estimated total hours per all license holders.
Next the private investigator hours are proportioned according to each NAICS code based on the NAICS code definition. It is assumed that 94.5% of activity in NACIS 561611 is due to Private Investigator activity, 2.5% for NAICS 561612 and 561621, and 0.5% for NAICS code 561613. Following the proportions, a ratio of taxable sales to gross sales is applied to the 60%, 50% and 40% group to obtain Taxable Hours After Allocation.
Using the Taxable Hours After Allocation, an hourly rate was applied to find the Taxable Hours at various rates. The high applies the $90 dollars per hour to the 60% group. The middle applies $45 dollars per hour to the 50% group. And to the low $35 dollars per hour is applied to obtain our range. From there, the growth rates on Consumer Non-Durables from the August 2017 GR Revenue Estimating Conference is applied then adjusted by the state sales tax rate to obtain the impact. There is a one month lag to collections, and the first-year cash is equal to eleven months of the recurring.
c. Additional check: Using the data gathered for the second analysis, a check was performed on Method 1 to find the Total Newly
Exempt Hours per License implied by the impact from the first analysis. We divided the recurring impact value by the price per hour, then divided it by the total number of licensees in the state to obtain the Total Newly Exempt Hours per License each fiscal year.
Section 4: Proposed Fiscal Impact Analysis 1: Top-Down Analysis
High Middle Low
Cash Recurring Cash Recurring Cash Recurring
2018-19 $(4.1 M) $(4.4 M) $(2.5 M) $(2.7 M) $(1.0 M) $(1.1 M)
2019-20 $(4.6 M) $(4.6 M) $(2.9 M) $(2.9 M) $(1.2 M) $(1.2 M)
2020-21 $(4.9 M) $(4.9 M) $(3.0 M) $(3.0 M) $(1.2 M) $(1.2 M)
2021-22 $(5.1 M) $(5.1 M) $(3.1 M) $(3.1 M) $(1.3 M) $(1.3 M)
2022-23 $(5.3 M) $(5.3 M) $(3.3 M) $(3.3 M) $(1.4 M) $(1.4 M)
Analysis 2: Bottom-Up Analysis
High Middle Low
Cash Recurring Cash Recurring Cash Recurring
2018-19 $(23.8 M) $(26.0 M) $(7.4 M) $(8.1 M) $(3.9 M) $(4.2 M)
2019-20 $(27.2 M) $(27.2 M) $(8.5 M) $(8.5 M) $(4.4 M) $(4.4 M)
2020-21 $(28.5 M) $(28.5 M) $(8.9 M) $(8.9 M) $(4.6 M) $(4.6 M)
2021-22 $(29.8 M) $(29.8 M) $(9.3 M) $(9.3 M) $(4.8 M) $(4.8 M)
2022-23 $(31.0 M) $(31.0 M) $(9.7 M) $(9.7 M) $(5.0 M) $(5.0 M)
List of affected Trust Funds: General Revenue group Section 5: Consensus Estimate (Adopted: 09/28/17): The Conference adopted a modified middle estimate for Analysis 2 with an adjustment made to the growth rate.
GR Trust Revenue Sharing Local Half Cent
Cash Recurring Cash Recurring Cash Recurring Cash Recurring
2018-19 (6.0) (6.6) (Insignificant) (Insignificant) (0.2) (0.2) (0.6) (0.6)
2019-20 (6.8) (6.8) (Insignificant) (Insignificant) (0.2) (0.2) (0.6) (0.6)
2020-21 (6.8) (6.8) (Insignificant) (Insignificant) (0.2) (0.2) (0.7) (0.7)
2021-22 (6.9) (6.9) (Insignificant) (Insignificant) (0.2) (0.2) (0.7) (0.7)
2022-23 (7.0) (7.0) (Insignificant) (Insignificant) (0.2) (0.2) (0.7) (0.7)
33
REVENUE ESTIMATING CONFERENCE Tax: Sales and Use Tax Issue: Private Investigative Services Exemption Bill Number(s): Proposed Language
Local Option Total Local Total
Cash Recurring Cash Recurring Cash Recurring
2018-19 (0.8) (0.8) (1.6) (1.7) (7.6) (8.3)
2019-20 (0.9) (0.9) (1.7) (1.7) (8.5) (8.5)
2020-21 (0.9) (0.9) (1.8) (1.8) (8.6) (8.6)
2021-22 (0.9) (0.9) (1.8) (1.8) (8.7) (8.7)
2022-23 (0.9) (0.9) (1.8) (1.8) (8.8) (8.8)
34
Proposed Language
Private Investigative Services Exemption
Analysis 1: Top-Down Approach
Cash Recurring Cash Recurring Cash Recurring
2018-19 (4.1 M)$ (4.4 M)$ (2.5 M)$ (2.7 M)$ (1.0 M)$ (1.1 M)$
2019-20 (4.6 M)$ (4.6 M)$ (2.9 M)$ (2.9 M)$ (1.2 M)$ (1.2 M)$
2020-21 (4.9 M)$ (4.9 M)$ (3.0 M)$ (3.0 M)$ (1.2 M)$ (1.2 M)$
2021-22 (5.1 M)$ (5.1 M)$ (3.1 M)$ (3.1 M)$ (1.3 M)$ (1.3 M)$
2022-23 (5.3 M)$ (5.3 M)$ (3.3 M)$ (3.3 M)$ (1.4 M)$ (1.4 M)$
Analysis 2: Bottom-Up Approach
Cash Recurring Cash Recurring Cash Recurring
2018-19 (21.9 M)$ (23.9 M)$ (6.8 M)$ (7.5 M)$ (3.5 M)$ (3.9 M)$
2019-20 (24.2 M)$ (24.2 M)$ (7.6 M)$ (7.6 M)$ (3.9 M)$ (3.9 M)$
2020-21 (24.6 M)$ (24.6 M)$ (7.7 M)$ (7.7 M)$ (4.0 M)$ (4.0 M)$
2021-22 (24.9 M)$ (24.9 M)$ (7.8 M)$ (7.8 M)$ (4.0 M)$ (4.0 M)$
2022-23 (25.3 M)$ (25.3 M)$ (7.9 M)$ (7.9 M)$ (4.1 M)$ (4.1 M)$
LowMiddleHigh
High Middle Low
9/22/2017 35
Proposed Language
Private Investigative Services Exemption
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
A B C D E F G H I J K
Adjustment Factors
Groups NAICS 561611
NAICS - 561611 CY 2015 CY 2016 FY conversion High Middle Low
A - Taxable Activities 263,202,994$ 243,974,258$ 253,588,626$ 10% 5% 1%
B - Investigative Activities 9,342,575$ 10,424,304$ 9,883,439$ 100% 95% 90%
C - Unknown Activities 25,876,438$ 25,295,777$ 25,586,108$ 25% 10% 5%
298,422,008$ 279,694,339$ 289,058,173$
NAICS -- 561612 NAICS 561612, 561613, 561621
A - Taxable Activities 505,961,565.56$ 534,284,963$ High Middle Low
B - Investigative Activities 2,217,288$ 2,390,416$ 2,303,852$ 5.0% 3.5% 1.0%
C - Unknown Activities 21,467,520$ 23,083,703$ 22,275,612$ 3.0% 2.0% 0.5%
529,646,373$ 559,759,082$ 544,702,728$
NAICS -- 561613
A - Taxable Activities 81,745,301.44$ 74,978,138$
B - Investigative Activities 27,800$ 44,576$ 36,188$
C - Unknown Activities 305,320$ 387,498$ 346,409$
82,078,421$ 75,410,211$ 78,744,316$
NAICS -- 561621
A - Taxable Activities 638,492,893$ 776,369,303$
B - Investigative Activities 673,029$ 1,774,940$ 1,223,985$
C - Unknown Activities 720,095,124$ 767,549,728$ 743,822,426$
1,359,261,046$ 1,545,693,970$ 1,452,477,508$
Taxable Sales
9/22/201736
Proposed Language
Private Investigative Services Exemption
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
A B C D E F G H I J K
Percentage Adjustment
NAICS - 561611 High Middle Low
A - Taxable Activities 25,358,863$ 12,679,431$ 2,535,886$
B - Investigative Activities 9,883,439$ 9,389,268$ 8,895,096$
C - Unknown Activities 6,396,527$ 2,558,611$ 1,279,305$
41,638,829$ 24,627,310$ 12,710,287$
NAICS -- 561612
A - Taxable Activities
B - Investigative Activities 115,193$ 80,635$ 23,039$
C - Unknown Activities 668,268$ 445,512$ 111,378$
783,461$ 526,147$ 134,417$
NAICS -- 561613
A - Taxable Activities
B - Investigative Activities 1,809$ 1,267$ 362$
C - Unknown Activities 10,392$ 6,928$ 1,732$
12,202$ 8,195$ 2,094$
NAICS -- 561621
A - Taxable Activities
B - Investigative Activities 61,199$ 42,839$ 12,240$
C - Unknown Activities 22,314,673$ 14,876,449$ 3,719,112$
22,375,872$ 14,919,288$ 3,731,352$
9/22/201737
Proposed Language
Private Investigative Services Exemption
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
A B C D E F G H I J K
Summary: Shares after Adjustment Factors (FY 15-16)
NAICS Taxable Sales Sales Tax Sales Tax
Sales Tax % of NAICS
Total Sales Tax
Sales Tax % of NAICS
Total Sales Tax
Sales Tax % of NAICS
Total
561611 289,058,173$ 17,343,490$ 2,498,330$ 14.40% 1,477,639$ 8.52% 762,617$ 4.40%
561612 544,702,728$ 32,682,164$ 47,008$ 0.14% 31,569$ 0.10% 8,065$ 0.02%
561613 78,744,316$ 4,724,659$ 732$ 0.02% 492$ 0.01% 126$ 0.00%
561621 1,452,477,508$ 87,148,651$ 1,342,552$ 1.54% 895,157$ 1.03% 223,881$ 0.26%
Total 2,364,982,725$ 141,898,964$ 3,888,622$ 2.74% 2,404,856$ 1.69% 994,689$ 0.70%
Growth rate - Consumer Non-Durables (August 2017)
2016-17 4.20%
2017-18 4.30%
2018-19 4.80%
2019-20 4.60%
2020-21 4.90%
2021-22 4.40%
2022-23 4.30%
LowTotal High Middle
9/22/201738
Proposed Language
Private Investigative Services Exemption
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
A B C D E F G H I J K
Total Taxable Sales For all 4 NAICS
High Middle Low
2015-16 64,810,364$ 40,080,939$ 16,578,150$
2016-17 67,532,399$ 41,764,339$ 17,274,432$
2017-18 70,436,292$ 43,560,205$ 18,017,233$
2018-19 73,817,234$ 45,651,095$ 18,882,060$
2019-20 77,212,827$ 47,751,046$ 19,750,634$
2020-21 80,996,255$ 50,090,847$ 20,718,416$
2021-22 84,560,091$ 52,294,844$ 21,630,026$
2022-23 88,196,174$ 54,543,522$ 22,560,117$
Sales Tax Conversion for all 4 NAICS
FY
Cash Recurring Cash Recurring Cash Recurring
2015-16 (3.89)$ (3.89)$ (2.40)$ (2.40)$ (0.99)$ (0.99)$
2016-17 (4.05)$ (4.05)$ (2.51)$ (2.51)$ (1.04)$ (1.04)$
2017-18 (4.23)$ (4.23)$ (2.61)$ (2.61)$ (1.08)$ (1.08)$
2018-19 (4.06)$ (4.43)$ (2.51)$ (2.74)$ (1.04)$ (1.13)$
2019-20 (4.63)$ (4.63)$ (2.87)$ (2.87)$ (1.19)$ (1.19)$
2020-21 (4.86)$ (4.86)$ (3.01)$ (3.01)$ (1.24)$ (1.24)$
2021-22 (5.07)$ (5.07)$ (3.14)$ (3.14)$ (1.30)$ (1.30)$
2022-23 (5.29)$ (5.29)$ (3.27)$ (3.27)$ (1.35)$ (1.35)$
High Middle Low
9/22/201739
Proposed Language
Private Investigative Services Exemption
1
2
3
4
5
6
7
8
9
10
11
1213
14
15
16
17
18
19
20
A B C D E F G H
NAICS Gross Sales Taxable Sales Tax Collections
561611 651,941,529$ 289,058,173$ 19,151,043$
561612 881,640,778$ 544,702,728$ 36,116,689$
561613 159,202,151$ 78,744,316$ 5,282,633$
561621 2,689,283,700$ 1,452,477,508$ 96,031,265$
# of Licensees* 7,817
Yearly Hours 2,000 1,500 1,250
In State Hour % 60% 50% 40%
Total Hours of All
licensees 9,380,400 5,862,750 3,908,500 *7731 Class "C" & 86 Class "MA"
Allocation of Total
P.I. Hours 60% 50% 40%
561611 94.50% 8,864,478 5,540,299 3,693,533
561612 2.50% 234,510 146,569 97,713
561613 0.50% 46,902 29,314 19,543
561621 2.50% 234,510 146,569 97,713
FY 2015-16
9/28/2017 40
Proposed Language
Private Investigative Services Exemption
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
A B C D E F G H
Taxable Hours After Allocation
561611 44.34% 3,930,337 2,456,461 1,637,640
561612 61.78% 144,887 90,554 60,370
561613 49.46% 23,199 14,499 9,666
561621 54.01% 126,658 79,162 52,774
$s Per Hour
High 90.00$
Middle 45.00$
Low 35.00$
Taxable Hours Analysis
Taxable Sales 60% at 2000 Hours 50% at 1500 Hours 40% at 1250 Hours
561611 353,730,317$ 110,540,724$ 57,317,412$
561612 13,039,825$ 4,074,945$ 2,112,935$
561613 2,087,873$ 652,460$ 338,313$
561621 11,399,260$ 3,562,269$ 1,847,102$
Total 380,257,276$ 118,830,399$ 61,615,762$
Taxable Sales/Gross Sales Ratio per
9/28/2017 41
Proposed Language
Private Investigative Services Exemption
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
A B C D E F G H
Growth rate - Consumer Non-Durables (August 2017)
2016-17 1.50%
2017-18 1.50%
2018-19 1.50% 1.90 2018
2019-20 1.50% 1.50 2019
2020-21 1.50% 1.40 2020
2021-22 1.50% 1.30 2021
2022-23 1.50% 1.50 2022
1.52
6% Sales tax applied to Taxable Sales on Row 50 & grown at Consumer Non-Durables
2015-16 (22.82) (7.13) (3.70)
2016-17 (23.16) (7.24) (3.75)
2017-18 (23.51) (7.35) (3.81)
2018-19 (23.86) (7.46) (3.87)
2019-20 (24.22) (7.57) (3.92)
2020-21 (24.58) (7.68) (3.98)
2021-22 (24.95) (7.80) (4.04)
2022-23 (25.32) (7.91) (4.10)
Sales Tax Impact Table :: Taxable Hours Analysis
Cash Recurring Cash Recurring Cash Recurring
2018-19 (21.9 M)$ (23.9 M)$ (6.8 M)$ (7.5 M)$ (3.5 M)$ (3.9 M)$
2019-20 (24.2 M)$ (24.2 M)$ (7.6 M)$ (7.6 M)$ (3.9 M)$ (3.9 M)$
2020-21 (24.6 M)$ (24.6 M)$ (7.7 M)$ (7.7 M)$ (4.0 M)$ (4.0 M)$
2021-22 (24.9 M)$ (24.9 M)$ (7.8 M)$ (7.8 M)$ (4.0 M)$ (4.0 M)$
2022-23 (25.3 M)$ (25.3 M)$ (7.9 M)$ (7.9 M)$ (4.1 M)$ (4.1 M)$
High Middle Low
FY
9/28/2017 42
Proposed Language
Private Investigative Services Exemption
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
A B C D E F G H
Check Against the Top-Down Estimate:
Cash Recurring Cash Recurring Cash Recurring
2018-19 (4.06)$ (4.43)$ (2.51)$ (2.74)$ (1.04)$ (1.13)$
2019-20 (4.63)$ (4.63)$ (2.87)$ (2.87)$ (1.19)$ (1.19)$
2020-21 (4.86)$ (4.86)$ (3.01)$ (3.01)$ (1.24)$ (1.24)$
2021-22 (5.07)$ (5.07)$ (3.14)$ (3.14)$ (1.30)$ (1.30)$
2022-23 (5.29)$ (5.29)$ (3.27)$ (3.27)$ (1.35)$ (1.35)$
Newly Exempt Hours per License*
High Middle Low High Middle Low
Recurring Recurring Recurring Recurring Recurring Recurring
2018-19 6.30 7.79 4.14 33.91 21.19 14.13
2019-20 6.59 8.14 4.33 34.42 21.51 14.34
2020-21 6.91 8.54 4.54 34.94 21.84 14.56
2021-22 7.21 8.92 4.74 35.46 22.16 14.78
2022-23 7.52 9.30 4.95 35.99 22.50 15.00
*(Top Down impact / Price Per Hour / # of Licenses)
FY
Middle Low
Analysis 1:Top-Down Analysis 2: Bottom-Up
High
FY
9/28/2017 43